Navin noted that the costs of transmitting files on the Internet have fallen sharply, rendering the advantages of the peer-to-peer technology used by Pirate Bay less attractive.
It's also unclear whether Global Gaming Factory will be able to reach licensing deals with labels and studios. John Kennedy, CEO of the International Federation of the Phonographic Industry, which represents music companies, and a representative for the Motion Picture Assn. of America would say only that they were encouraged by the news.
However, GGF has yet to reach any licensing agreements, meaning that when it takes over Pirate Bay by early August, pending shareholder approval, it probably won't have much to offer.
"In four weeks we don't expect to strike all our deals," Pandeya said. "But we want the industry to understand that now, whatever they want, we're willing to work with them."
This wouldn't be the first attempt to turn a popular file-sharing site into a copyright-friendly venture. The Web is littered with failed or struggling companies whose path Pirate Bay is following, including BitTorrent, Napster and iMesh.
"When the terms change, the audience shifts," said Eric Garland, CEO of online-media tracking firm BigChampagne. "I absolutely expect that in a year or two we'll be talking about some other website that has become the single largest point of distribution for unauthorized media."
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ben.fritz@latimes.com
